Metro board OKs ads to help increase revenue

Metro passengers could be barraged with ads inside and outside the trains this fall as the transit agency tries to get through the grim economy with a new source of money.

The Metro board voted unanimously Wednesday to reverse its no-advertisement policy and adopted a program that would be the most aggressive among new Western light-rail systems.

Wednesday's vote clears Metro to solicit proposals for advertising in display cases, on floors and wrapped around the outside of trains. Ads also will be allowed on flat screens to be installed inside the trains and on new station platform kiosks.

Metro is turning to ads for revenue, partly because it gets most of its operating funds from cities that are strapped for cash because of the economic downturn. Unless other sources of revenue can be found, the system could face service cuts and more fare increases.

Last year, Metro consultants predicted that a full-scale ad campaign could bring in $1.6 million a year. But that was before the economic crash last fall, and it remains unclear how much Metro could make. Metro's proposed budget for the coming year is $34.5 million.

A survey of systems in Texas, Colorado and Utah shows that no light-rail system goes nearly as far as Metro in where ads are allowed to be placed. But some systems are more liberal in the advertising content they accept.

In Dallas, the DART system does allow paid political ads but only in display cases on platform windbreaks. Sue Bauman, DART vice president of marketing and community affairs, said she understands Metro's decision to open its system to extensive advertising.

"Anybody prudent in this economy has to be looking at ways to strengthen their revenue," Bauman said.

Houston accepts no ads on its light-rail system.

In Salt Lake City, light-rail trains have modest panel ads on the inside and outside of each car but nowhere on stations. The Utah Transit Authority grossed $320,000 last year and accepts some ads that sell alcohol, mostly promoting restaurants.

In Denver, the Rapid Transit District allows ads only on overhead panel and see-through window stickers on the insides of trains.

The content policy is similar to Metro's. Like many systems, RTD contracted its advertising program to a vendor. The vendor takes in everything above a negotiated amount. The RTD earned a $2.8 million last year, before the vendor's share, including ad sales on Denver's extensive bus system.

Metro will seek two contracts to manage its ad program, one for traditional sources, another for the electronic displays.

In February, the Phoenix-area public got its first taste of train advertising during a weeklong experiment to promote the NBA All-Star Game.

About 200 people responded to an unscientific poll on Metro's Web site. The agency reported that opinions were split evenly over the eye-catching wraparound ads.

The experiment grossed $40,000 for Metro. Metro marketing manager Marty McNeil said station ads, train wraps and decals on train floors or platforms could start appearing as soon as the fall. The flat-screen ads and kiosks may be a year away.

The screens inside trains would be silent and not interactive. Instead, they would scroll through ads, news headlines, Metro public-service messages, news and entertainment spots. Similar systems exist inside some elevators and on Atlanta's MARTA heavy-rail system.